News

Quiznos granted interim financing amidst bankruptcy proceedings

March 18, 2014

Quiznos today announced that the U.S. Bankruptcy Court in Wilmington, Delaware granted its request for some interim financing to help support the business.

According to a news release, the court provided authorization for the Denver-based chain to access up to $10 million of the $15 million Debtor-in-Possession financing committed by its senior lenders. The new financing, combined with cash generated from the company's ongoing operations, will be available to support the business during the restructuring process.

Quiznos also received interim approval to continue paying employee wages, salaries, benefits and other employee obligations. Additionally, the court granted Quiznos final authorization to continue honoring all current customer and franchisee programs and to pay certain pre-petition claims arising under the Perishable Agriculture Commodities Act and under Bankruptcy Code Section 503(b)(9), as well as pre-petition claims from shippers and claims incurred in connection with post-petition delivery of goods and services, the release said.

"We are pleased with the initial progress we have made in the restructuring process," said CEO Stuart K. Mathis. "In particular, we appreciate the response we have received from our global network of franchise owners, who have demonstrated their commitment to providing Quiznos customers with fresh, high-quality and great-tasting food. We look forward to working closely with our franchisees to implement a business plan designed to further enhance the customer experience, elevate the profile of the brand and help increase sales and profits."

Last week, Quiznos voluntarily filed a "pre-packaged" restructuring plan under Chapter 11 of the U.S. Bankruptcy Code to enable the company to reduce its debt by more than $400 million.